ENTERTAINMENT REPRESENTATION AND REGULATION

FORMS OF REPRESENTATION

Talent Agent--gets contracts and engagements

-William Morris Agency

-International Creative Management (ICM)

-Creative Artists Agency (CAA)

Typical commission: 10%

Personal Manager--develops career path (training, acceptable projects, . . . , personal problems). A personal manager handles only about 6 persons.

Commission: 15-25%

Business Manager--handles more complicated financial matters when the career "takes off".

Commission: 5%

Entertainment Lawyer--litigating and being sued

Hourly fee

LEGISLATION REGULATING REPRESENTATIVES

NY

-an "agent" must have be licensed, but there is an exception for persons whose "business only incidentally involves the seeking of employment"

-violation: ($1,000/1 year)

-maximum commissions

single engagement: 10%

orchestra, opera, . . .: 20%

-complaints heard by Commissioner of Labor>administrative court>state court

CA has similar legislation, but there is an exception for procuring recording contracts

-an agent must be licensed

bonded

fingerprinted

contract forms used must be preapproved

fees must be posted

description of how disputes are to be resolved must be posted

-operating without a license does not have criminal sanctions, but there will be a forfeiture of future commissions and repayment of past fees

Case: Raden v. Laurie (Cal. App. 1953)

Jan. 1948 contract: find employment

July 1948 contract: Raden is "advisor and counsel and business counsel" but not authorized to procure jobs.

Oct. 1949 terminated.

Raden wants his 10% commission, and Laurie tries to avoid payment because he is not licensed.

Issue: Is he an agent?

Case: Wachs v. Curry (Cal. App. 1993)

In 1987 Arsenio Hall contracted with X Management. The contract terms stated that X was not a talent agent. The commission was set at 15%. But X did secure contracts for Hall: "Coming to America," "The Arsenio Hall Show," $1.5mil endorsement with Coca-Cola. . . . Commissions between Sept. 1987 and August 1990 amounted to $2.62 million. Hall became angry with X and dismissed them. He tried to avoid paying the commission as they were unlicensed.

Issue: Is the legislation unconstitutional?

ASSIGNMENT OF RIGHTS V. DELEGATION OF DUTIES

Case: Contemporary Mission v. Famous Music Corporation (2nd Cir. 1977)

CM is a group of RC priests who write, produce, publish and perform music. They composed the rock opera, "Virgin." The defendant publishes music; past successes have been "Tommy" and "Jesus Christ Superstar."

There are 2 contracts at issue--

1. The Virgin Agreement (1972) p. 838

FMC has the exclusive right to manufacture/distribute CM's music

FMC

will appoint someone to oversee promotion and sales

will spend $50,000 on promotion in the first year

will issue 4 singles from "Virgin" within 2 years

non-assignability clause

2. The Crunch Agreement (1973)

CM gives to FMC the exclusive right to distribute music (other than "Virgin" under the Crunch label.

In 1974 defendant business was sold to ABC Records. ABC wanted nothing to do with CM.

Damages

breach of contract

compensation for lost royalties

statistical evidence

compensation for lost revenue on concert tours

Assignment of rights vs. delegation of duties

p. 841

FIDUCIARY DUTIES

Case: ABKCO Music v. Harrisongs (S.D.N.Y. 1981)

Events

In the copyright infringement suit, Bright Tunes v. Harrisongs, Bright Tunes wins.

A hearing on damages is scheduled.

Bright Tunes sells the copyright and the rights in the litigation to ABKCO Music for $587,000.

Harrisongs alleges that Klein of ABKCO had been its business manager during the period of inringement, that there had been a breach of fiduciary dury, hence ABKCO shouldn't be allowed to recover.

Hearing on damages.

Earnings:

mechanical royalties

performance royalties

sheet music

manufacturer--Apple Records, Inc.

Deductions:

expenses

portion of earnings due to other factors (Harrison's fame, etc.)

Hearing on Klein's breach of fiduciary duty (fiduciary--pertaining to a position of trust and confidence)

1971-1973 Klein (ABKCO) was GH's business manager and was paid 20% of the profits.

Bright Tunes sued

1973--Klein was fired

1975--Harrison makes a settlement proposal of $148,000

Klein offers to by BT for $200,000

Trial (BT wins)

1978--Klein buys BT for $587,000

p. 885 and p. 888